Slowdown in exports affects Tirupur construction sector
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A decline in exports, increasing prices, appreciation of the rupee against the dollar and heavy investments in effluent treatment plants have had an impact on the hosiery town, finds out M. Soundariya Preetha
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Photo: M. Balaji
Laudable initiative: A bridge on Kangeyam road in Tirupur for which Valam, a private initiative, also contributed. —
For a town that is directly connected to global markets, a slowdown in exports as well as increasing prices immediately reflects on its economic activities too.
During the last one year, a number of factors such as the shooting up of the international crude oil prices, appreciation of the rupee against the dollar and heavy investments that have been made in the effluent treatment plants in Tirupur have all ha
d an impact on the knitwear sector.
Higher
In addition to this, the revised guideline value is higher than the market price in a number of locations in Tirupur and this is a contributing factor too.
The bank interest rates have shot up and building material costs are revised frequently.
All these seem to have had an impact on the construction activities in the hosiery town.
Construction works have come down by at least 30 per cent in the last one year in the town, says K. Subramanian, chairman of the Builders’ Association of India, Tirupur Centre.
Office bearers of the new centre spoke about the prevailing trend in the construction field in Tirupur to The Hindu Property Plus.
The Tirupur Centre was launched in June this year and has about 70 members from Tirupur, Palladam, Avinashi and Annur.
When the going was good, the town saw the number of traders, contractors and builders increasing manifold.
Growth
Though all of them are active even now, the growth is not as substantial as it was a year ago.
The main area that has seen a slowdown is industrial construction, they add. Housing projects continue as there is demand.
On the residential front too, group housing projects have more demand than apartments.
The apartment concept is yet to pick up in Tirupur, they say, commenting on the prevailing trend in the town.
This is mainly an industrial area and a number of entrepreneurs and employees prefer investing in properties in places such as Coimbatore.
They choose to travel to Tirupur for work every day for reasons such as children’s education and faster appreciation of the property value.
Plans
However, the centre has several plans on hand to explore and intends to take these up in the coming days.
“We are looking at having uniform construction costs as a minimum level to be adopted.
“We are also looking at projects to develop budget houses in the outskirts for the workers,” they say.
The builders and entrepreneurs are also pooling in resources in order to meet the high construction cost for public works.
With the cost of the materials shooting up, the tender costs are lower than the actual price by nearly 20 per cent.
However, in an exemplary effort, the builders and entrepreneurs have come together, contributed and completed projects for the general good.
For instance, Valam, a private initiative, has contributed about Rs. 24 lakh for a bridge work on Kangeyam road.
Besides this, the organisation is also taking up road widening work near Karuvampalayam.
“We plan to take up a number of projects with social benefit in the coming days,” says Mr. Subramanian.
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